I measured my cb550 shocks at 12.5 inches eye center to eye center. I measured my cb750F shocks at 13.25 inches eye center to eye center.
These are fully extended measurements.
Collapsed length is 10 inches for the 550 (2 1/2 inch stroke) And 10.25 inches for the 750F (3 inch stroke)
The sag you refer to, has to do with the spring rate and how many pounds it supports under compression.
I like the to have the shocks or suspession at two thirds extension with the weight applied while driving. This allows the suspension to compensate for bumps in the road and depressions in the road surface, mostly without hitting the shock's end limits. Further, when leaned over, side G loads are higher than straight up weight. So, the springs compress more and the shock is at a lower part of its travel range. I still want some travel excursion, so as not to hit the shock end limits, which could lift the tire off the road surface, or at least reduce the tire contact traction.
As to shock height changing the steering. Yes, to an extent, it makes it less stable. But, it's not just the shocks. It's the spring weight and tire height, too. Less stability may also bring head shake/wobble into the realm, too. And chain adjustment becomes a bit more difficult to get right as the swing arm is farther from it's straight back positioning, with the chassis raised up further.
But, I'm no cafe expert. I'm sure those guys will tell you I'm full of #$%*e.
Cheers,